UPDATE: The IRS has posted an early release draft of Form 8995, which will need to be included along with 2019 tax returns to calculate the IRC Section 199A QBI deduction, also known as the 20% pass-through deduction. This document is designed to show the IRS how the qualified business income deduction was computed. The forms are currently not required to be included with tax returns being filed for the 2018 tax year, but taxpayers will need to be aware of these forms going forward.
This is our original article from January 22nd discussing the final regulations for the QBI deduction:
On January 18, 2019, days before the IRS was to open for tax filing season, the IRS issued Final Regulations and Notice 2019-7 on the IRC Section 199A pass-through deduction (also known as the 20% Qualified Business Income Deduction or QBI Deduction). The major changes to real estate are outlined below. Many of these rules are viewed as a win for taxpayers.
For more information about how these final regulations could impact your business, contact a member of your DGC Client Service Team or Jonathan Farrell, CPA at 781-937-5373 / firstname.lastname@example.org or Patrick Bevington, CPA, MST at 781-937-5365 / email@example.com.